9911796707
TMI Blog2018 (8) TMI 1479X X X X Extracts X X X X X X X X Extracts X X X X ..... Brief facts are as under. The petitioner is an individual and is assessable to tax. In order to unearth undisclosed income and to reduce litigation, the Union legislature framed the said Scheme by enacting Chapter IX to the Finance Act, 2016 ("the Act" for short). As per section 183 of the Act, subject to fulfillment of conditions, an assessee could make a declaration of undisclosed income. Section 184 of the Act made special provisions for charging such income. Under subsection(1) thereof, there would be a basic tax at the rate of 30%. Subsection (2) envisaged surcharge thereon. Section 185 provides for penalty at the rate of 25% on such tax. Section 186 prescribes the manner of making declaration. Section 187 pertains to time for payment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... This revised declaration was also accepted by the department. In fact, counsel for the petitioner drew our attention to the clarification issued by CBDT under circular dated 14. 7. 2016 providing that a declaration once made can be revised before the last date of closure of the Scheme provided undisclosed income in the revised declaration is not less than the undisclosed income declared in the declaration already filed. This revised declaration filed by the petitioner was in tune with the provisions of the Scheme also. 4. The petitioner thus had to make payment of first installment of tax and penalty on or before 30. 11. 2016. Such amount as per the revised declaration of undisclosed income of Rs. 13 crores came to Rs. 1, 46, 25, 000/. Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the interest on such delay. CBDT however, by the impugned order dated 18. 9. 2017 rejected the request for regularising the late payment primarily on the ground that as per the circular dated 28. 3. 2017, following reasons were not considered good enough for condoning late payment of the installment: "(a) Personal/emergency reasons; (b) Lack of liquidity; (c) Confusion about the due date; (d) Rust at Bank; (e) Any other reasons which are attributable to the declarants. " 6. Thereupon present petition has been filed. 7. We have already recorded the factual background. What is undisputed is that the petitioner made initial declaration of Rs. 12. 62 crores on undisclosed income. This was revised within the time permitted und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, instructions and directions to incometax authorities as it may deem fit for the proper administration of this Act and such authorities and all other persons employed in the execution of this Act shall observe and follow such orders, instructions and directions of the Board. Subsection (2) of section 119 provides that without prejudice to the generality of the foregoing power, the Board would have certain special powers. Clause(b) thereof provides that the Board may if it considers it desirable or expedient so to do for avoiding genuine hardship in any case or class of cases, by general or special order, authorise any incometax authority to admit an application or claim for any exemption, deduction, refund or any other relief under the Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Bona fides of the petitioner are not in doubt even by the department. As many as seven declarations have been made. In all such declarations, tax and penalty amounts have been deposited in each case before the appointed date. In the present case also, the sum as large as Rs. 5. 85 crores came to be deposited. Barring Rs. 5, 62, 500/, rest was deposited in time. Even delay in making deposit of Rs. 5, 62, 500/was minuscule and had proper explanations for lapse. It would be extremely harsh now to reject the very declaration of the petitioner by treating it as nonest. Effect of section 191 perhaps would be that tax already paid would become nonrefundable. In other words, the petitioner's entire deposit of tax, surcharge and penalty were non ..... X X X X Extracts X X X X X X X X Extracts X X X X
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